India is strengthening its position as a key destination for global real estate capital in 2026 as institutional investors sustain momentum in commercial property investments amid easing interest rates and improving occupier demand.A renewed focus on income visibility, asset quality and long-term growth is positioning the country as an increasingly strategic market within Asia-Pacific portfolios, particularly for high-grade office, logistics and emerging operational real estate segments across major urban centres.Global institutional investors are set to deploy $144 billion into commercial real estate in 2026, marking a revival in investment activity, according to a Knight Frank survey of 119 global investors representing more than $1.4 trillion in assets under management. “This is empirical evidence of a turnaround in the global real estate investment market. The nuances within the findings are fascinating – after several torrid years for the global office market, the undeniable return of the occupiers has finally spurred a return of the investors, and the sector has gone from almost last place to now first,” said Nick Braybrook, Partner and Global Head of Capital Markets, Knight Frank.While the UK and Germany top capital destination rankings, India among global economies is transitioning from an emerging allocation to a strategic portfolio market.Live Events“India is increasingly being viewed as a defensive growth market, supported by strong occupier demand, improving asset quality and long-term structural drivers.” said Shishir Baijal, International Partners, CMD, Knight Frank India.According to him, this closely aligns with India’s evolving commercial real estate market, particularly Grade A office assets across Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Pune, and Chennai, where structured partnerships and programmatic platforms are becoming the preferred route for scaling exposure and managing risk.The survey reveals that 87% of investors (by AUM) intend to increase direct commercial real estate investment in 2026, while 62% expect to be net buyers. Against this backdrop, India is emerging as an increasingly relevant destination for global capital seeking scale, income stability, and long-term growth.The resurgence in investor interest is being led globally by a renewed focus on Core and Core-plus strategies, with $37 billion of planned global investment targeting core assets.Beyond offices, living sectors are the second most targeted globally, with 65% of investors planning allocations, while industrial and logistics assets remain a high-conviction segment at 63%. Retail has also returned to focus, with 56% of investors planning allocations, reflecting stabilisation in dominant, experience-led shopping centres.Operational real estate, including data centres, infrastructure and healthcare, is gaining traction as investors pursue long-term structural tailwinds, trends that are increasingly visible in India’s evolving real estate landscape. As per the survey, industrial and logistics assets remain a high-conviction sector, targeted by 63% of investors globally, supported by supply-chain reconfiguration, e-commerce growth and infrastructure investment, trends that are particularly pronounced in India.
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